In order to successfully hedge Mortgage Servicing Rights (MSR) assets, institutions need a sophisticated approach utilizing robust analytical systems that can properly model the negative convexity of the asset, as well as the human capital in place to properly manage these systems/models. In this session, we will review two ways to hedge an MSR asset and how each one impacts risk-adjusted returns in order to help your institution meets its financial goals.
LEARNING OBJECTIVES/SESSION TAKEAWAYS:
- Review current market trends
- Recognize the movements in MPH portfolios
- Understand the balance sheet impacts
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